The long-term disability plan for eligible M&P, Administrative Executive, and CUPE 2278 ELI staff members is called the Disability Benefit Plan (DBP). This is a mandatory, employee-paid plan that provides a monthly income after a six-month waiting period for those who meet the definition of total disability under the plan. The DBP is an insured benefit administered by Sun Life Financial, with oversight from the M&P DBP Governance Committee. Premiums for this plan are deducted from each of your pay cheques.

Each year, effective January 1st, the premium rate is reconsidered based on claims experience, demographic data of plan members, and potential future claims experience of the plan. The rates can go up or down each year, depending on the above factors. The DBP premium rate proposed by the Insurer (Sun Life) was recently reviewed and negotiated by the M&P DBP Governance Committee and its Benefits Consultant.

As a result of the review, your 2017 DBP premium rate will be 1.039% of earnings. This is a slight increase from the 2016 rate of 1.021%. If you’re a monthly employee, this new premium rate will be reflected on your Jan. 15, 2017, pay cheque. If you’re an hourly employee, the new premium rate will be reflected on your Jan. 23, 2017, pay cheque.

Below is the history of DBP premium rates. The 2017 rate continues to be stable, and remains well below 2013 and 2014 DBP premium levels.

2013: 1.346%

2014: 1.310%

2015: 1.049%

2016: 1.021%

2017: 1.039%

The M&P DBP Governance Committee will continue to regularly review the disability plan to ensure that it meets the needs of M&P, Administrative Executive, and CUPE 2278 ELI plan members, and that premium rates remains fair and financially competitive.